LONG-TERM CARE INSURANCE
But unique from all other types of insurance is long-term care insurance, which is unisex across the board. According to the American Association for Long-Term Care Insurance, this sector remains completely gender-neutral even though women have a substantially higher risk of needing long-term care and making a claim on their policy.
So What Can Be Done?
When women in the state of Kentucky found themselves paying 150 percent more than young men for health insurance in 1994, the state changed its rules and did away with gender-rated insurance premiums. But over the next 10 years, low-risk men switched companies to maintain lower rates; to make up for this loss, insurance companies quickly left the state. Because gender-equal rates were taking such a toll on the state and its companies, Kentucky canceled the program and raised women’s premiums again, strictly based on their gender.
However, Montana successfully outlawed gender rating for all types of insurance in 1993, ultimately creating a unisex gender law that deems gender rating to be discrimination. Unlike Kentucky, Montana’s program has been successful and well-received.
Other states are taking baby steps toward Montana’s ban on inequality, prohibiting gender rating for health insurance in Maine, Massachusetts, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Oregon, and Washington. Gender rating is limited, but not prohibited, in New Mexico and Vermont. California governor Arnold Schwarzenegger signed a bill in October 2009 that prohibits gender rating in the state’s insurance markets.
But just because the insurance companies are setting these rates, does it necessarily make them right? Lawmakers, companies, and consumers all have their own opinions and continue to discuss the validity of statistics and claims. But regardless of gender, there are many ways to lower premiums and achieve the best possible personal rates, including quitting smoking and maintaining a healthy lifestyle.
This article was originally published by Consumer Insurance Guide
